What is a Reverse Mortgage?

A Reverse Mortgage is an FHA government insured loan designed for homeowners age 62 and older.

Reverse Mortgages enable homeowners to convert a portion of the equity in their home into cash

Utilizing the government insured Home Equity Conversion Mortgage (HECM) allows the homeowner to stop making mortgage payments for as long as they live in the home

In addition to eliminating all mortgage payments, the homeowner may be eligible for tax-free money based on the amount of equity they have in their home

With a reverse mortgage (HECM) the homeowner may also purchase a primary residence. (To qualify, the homeowner must pay the closing costs for the new residence in addition to the difference between the sales price and the amount granted through the HECM)